CBN Raises N4.65trn as Bank Recapitalisation Exercise Ends

The Central Bank of Nigeria (CBN) has announced the conclusion of its recapitalisation exercise in Nigeria’s banking sector, targeted at boosting the resilience of the financial system.

This was disclosed in a statement jointly signed by the CBN Director, Banking Supervision, Olubukola Akinwunmi, and the Acting Director, Corporate Communications, Hakama Sidi Ali, yesterday.

The apex bank introduced a revised recapitalisation policy in March 2024, giving banks a 24-month window, from 1 April 2024 to 31 March 2026, to strengthen their capital base.

The directive required Nigerian banks to strengthen their capital base, with thresholds of N500 billion (International), N200 billion (National), and N50 billion (Regional).

On Wednesday, the CBN stated that the programme recorded strong participation from both domestic and international investors, with 72.55 per cent of capital sourced locally and 27.45 per cent from international markets, which reflects sustained confidence in the Nigerian banking sector.

“The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well ­positioned to support economic growth and withstand domestic and external shocks,” the CBN Governor, Olayemi Cardoso, stated.

The apex bank noted that 33 banks have met the revised minimum capital requirements established under the programme, raising a total of N4.65 trillion in new capital.

According to the apex bank, a limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

The central bank stated that all banks remain fully operational, ensuring continued access to banking services for customers.

It added that the programme has strengthened capital adequacy ratios (CAR), with the sector maintaining levels above international Basel benchmarks.

The bank noted that the minimum CAR thresholds remain at 10 per cent for regional and national banks and 15 per cent for banks with international authorisation.

The CBN stated that it has strengthened its risk based capital adequacy framework, requiring banks to conduct regular stress testing across defined scenarios and maintain appropriate capital buffers.

“Key regulatory measures, including prudential guidelines and the supervisory framework, are subject to periodic review to support ongoing strengthening of governance, risk management, and sector resilience,” the statement read.

The central bank explained that the recapitalisation programme was carried out without disruption to banking services, noting that it ensured continuous access for individuals and businesses throughout the process.

It said that the successful completion of the programme establishes a stronger, more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks.

“The Central Bank of Nigeria remains committed to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the broader public, and to advancing the sustainability of the nation’s financial architecture,” the statement read.

While commenting, Nigeria’s first professor of capital markets, Prof. Uche Uwaleke stated that the CBN will need to shift focus from capital raising to risk supervision.

“Key areas to watch include potential overexposure to high-risk sectors, governance lapses arising from rapid capital inflows, and the temptation for aggressive lending that could weaken asset quality. There’s also the broader macro risk, especially exchange rate volatility and inflation, which could test the resilience these new capital buffers are meant to provide.

“CBN should also consolidate the gains by strengthening supervisory oversight, enforcing strict corporate governance standards, and ensuring that this new capital translates into productive lending rather than speculative activity. The real success of this exercise will ultimately be measured by its impact on economic growth and financial stability, not just the amount of capital raised,” he said.